22 arrested across Europe in €600 million COVID recovery fund scam

Europe Authorities have taken decisive action in a major crackdown Thursday, resulting in the arrest of 22 individuals across four European countries as part of an extensive investigation into an alleged €600 million fraud involving COVID recovery funds, announced the European Public Prosecutor’s Office (EPPO).

Dozens of raids were carried out, leading to arrests in Italy, Austria, Romania, and Slovakia. The arrests were made in connection with an investigation into a suspected criminal network believed to have illicitly acquired the funds, stated the EPPO in a press release.

The criminal organisation is accused of defrauding €600 million from the EU’s Recovery and Resilience Facility (RRF) designated for Italy, according to the EPPO, headquartered in Luxembourg. The Venice office of Italy’s financial police unit, the Guardia di Finanza, has seized assets exceeding €600 million under the authority of a pre-trial judge.

Among the 22 arrested suspects, eight have been remanded in custody pending trial, while the remaining 14 are under house arrest. Additionally, one individual, an accountant implicated in the scheme, has been barred from practising.

The EPPO disclosed that its investigation has been focused on uncovering an alleged criminal network that orchestrated a fraud scheme between 2021 and 2023 to siphon funds from Italy’s allocation of the RRF.

The RRF, established to help the bloc’s countries bounce back from the economic blow dealt by the Covid pandemic, was worth more than €720 billion, financed in large part through common EU borrowing.

That model, particularly the joint borrowing, has been touted by some EU countries as one to replicate as the European Union steps up its defence industry and cooperation in response to the threat from Russia, and to support Ukraine.

With inputs from AFP